Finding 1084349 (2023-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-11-14

AI Summary

  • Core Issue: BOCES mismanaged funds by paying an outside contractor without prior budget revision approval from the State.
  • Impacted Requirements: Funds must be used according to the agreement with the State, including proper accounting and budget revisions.
  • Recommended Follow-Up: BOCES should ensure accurate budgeting and accounting practices to comply with State requirements and avoid future issues.

Finding Text

84.011 MIGRANT EDUCATION PROGRAM – DEPARTMENT OF EDUCATION –COLORADO DEPARTMENT OF EDUCATION PASS-THROUGH 2023-001 ACTIVITIES ALLOWED 1. Criteria: - Local educational agencies use funds in accordance with the agreement with the State educational agency to (a) identify eligible migratory children and their needs; (b) provide instructional and support services that address the identified needs of the eligible children; and (c) to support such objectives through related activities such as, but not limited to, professional development, parental involvement, and transfer of student records. (Emphasis added) 2. Condition: The BOCES submitted a budget that was approved by the Colorado Department of Education outlining the expenditure of certain grant dollars for salaries and benefits to support their Migrant Education Program. These funds were ultimately paid to an outside contractor without an approved budget revision being submitted to the State. The costs were allowable under grant guidelines. 3. Context: The BOCES coded these expenditures to salaries, benefits and supplies expense throughout the year as that was how they were being billed by the third-party contractor. Subsequent to year end, the BOCES reclassified the salary and benefit portion to purchased professional services. As this was subsequent to year end, the BOCES could not file a budget revision with the State. Based on discussions with the client they did not appear to be treating these payments similar to their “flowthrough” dollars to their member district’s rather than as an independent contractor. 4. Cause: The BOCES did not correctly account for the third-party activity until subsequent to year end. 5. Effect: The BOCES spent funds for activities that were theoretically, but not actually, approved by the State. 6. Recommendation: The BOCES should properly account for its activities both in the budget process and in its formal accounting. This will also help ensure that any other requirements related to contracting are also appropriately followed. 7. Management Response: Centennial BOCES will review the expected activities to ensure that they are appropriately listed on the budget submitted to CDE for approval and properly coded throughout the year.

Categories

Procurement, Suspension & Debarment HUD Housing Programs

Other Findings in this Audit

  • 507907 2023-001
    Significant Deficiency
  • 507908 2023-002
    Significant Deficiency
  • 1084350 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.011 Migrant Education State Grant Program $2.27M
84.010 Title I Grants to Local Educational Agencies $1.02M
84.027 Special Education Grants to States $185,941
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $137,029
84.424 Student Support and Academic Enrichment Program $126,574
84.196 Education for Homeless Children and Youth $75,000
84.173 Special Education Preschool Grants $41,534
84.048 Career and Technical Education -- Basic Grants to States $21,000
84.425 Education Stabilization Fund $20,872
84.365 English Language Acquisition State Grants $8,585